Western Alliance Bancorp. (NYSE: WAL) ticked higher in morning trading on Wednesday as UBS initiated coverage of the stock with a Buy rating and a price target of $85, implying an upside potential of 192.1% at current levels.
UBS indicated that the market is not factoring in the regional bank’s earnings power when it comes to the bank’s stock price. This is because of the contagion risk due to the collapse of SVB. Instead, UBS believes that WAL has a strong growth and profitability potential and concerns about the bank’s credit profile are overdone.
Other Wall Street analysts also remain bullish about WAL stock with a Strong Buy consensus rating based on six Buys and one Hold.
